"The Liechtenstein IP Box, brief commentary on selected aspects and outlook"

The Liechtenstein IP Box offers companies tax relief on income from intangible assets such as patents, trademarks, designs, software and databases. The aim is to create incentives for the development and maintenance of intangible assets through reduced taxation and to promote high-quality jobs. Countries such as Belgium, China, France and others have similar IP box systems.

Art. 55 SteG, introduced on January 1, 2011, regulates the tax benefits for research and development through a deduction of 80% of income from intangible assets. Following criticism and adjustments, the catalog of eligible intangible assets was expanded. Despite being repealed by the State Court, the regulation was reinstated with minimal changes.

In future, input-oriented incentives, such as increased tax deductibility of research expenditure, could be introduced in order to support SMEs in particular and position Liechtenstein as an attractive location for research and development. This would increase Liechtenstein's competitiveness in an international context and lead to economic growth.

Topics in the publication

• Definition and significance of the IP Box
• Comparison of international IP Box systems
• Legal basis in Liechtenstein
• Promotion of research and development
• Practical application and qualification
• Expansion of the funding catalog
• Judicial review
• Future prospects and recommendations